Published: December 18th, 2025 • Last Updated: December 18th, 2025
Author: Ross Taylor on AskRoss.ca

Everything You Need to Know About Using Crypto for a Mortgage Down Payment in Canada

With the rise of digital assets, more Canadians are asking whether they can use their crypto portfolios to get into the housing market.

The short answer?

You can’t use Bitcoin or Ethereum to walk into a bank and buy a house. But you can use your cryptocurrency, just not directly. And there are a few important hoops you’ll need to jump through first.

That means if you’ve been hodling Bitcoin since 2017 and want to use it for your down payment, you’ll need to sell it first, pay any applicable taxes, and then document every step from the moment you liquidate to the moment the funds land in your bank.

It’s doable. But it’s not as simple as cashing out and calling it a day.

For more information on this topic, check out our first article in this series “Can I Use Cryptocurrency To Buy A House In Canada?”

Jump to a specific section in this article ↓↓

• Can I use cryptocurrency as a down payment for a home in Canada?
• How does the CRA treat crypto when buying a home?
• Do any Canadian banks accept cryptocurrency directly?
• Which Canadian banks allow down payments from crypto proceeds?
• What if you just sold your crypto and want to buy soon?
• Are there any lenders that don’t allow crypto-sourced down payments?
• What to avoid when using crypto for your down payment
• Are crypto-backed mortgages available in Canada?
• What are the risks of using crypto for a down payment?
• Stablecoins and the future of crypto in Canadian real estate
• Bottom line: Using crypto for a down payment in Canada
• List of all FAQs: Using Cryptocurrency for a Down Payment in Canada

Can I use cryptocurrency as a down payment for a home in Canada?

First things first: if you want to use crypto gains to buy a house, you’ll need to sell your crypto and fully convert the funds into Canadian dollars. You’ll also need to season that money in your personal account and provide a rock-solid paper trail.

In the eyes of the banks, it’s not about the crypto. It’s about the CAD in your chequing account.

Here’s what banks want to see before accepting your crypto cash

• The crypto was sold through a legitimate, recognized exchange (like Coinbase, Wealthsimple, or Kraken)
• The funds were deposited into your personal bank account in Canadian dollars
• You’ve held those funds in your account for at least 90 days (this is the seasoning period)
• You can provide complete documentation, including screenshots, trade confirmations, and transfers from the exchange to your personal account
• The trail clearly shows your name throughout and meets anti-money-laundering (AML) requirements
• You reported any resulting gains or losses on your tax return from the crypto you sold, and you can show your CRA reporting if requested by the lender.

If that sounds intense, it’s because it is. But if you prepare ahead of time, it’s absolutely doable.

This is all about compliance.

Canadian lenders, even the more flexible ones, are bound by anti-money laundering (AML) rules. If they can’t clearly see where your down payment came from, they’re not funding your mortgage.

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How does the CRA treat crypto when buying a home?

If you’re planning to sell crypto to help fund your home purchase, keep in mind, you’re triggering a taxable event.

The CRA treats crypto as a commodity, not a currency. So, when you sell it, they see it the same way they’d see you selling shares of stock.

Any gain between what you paid for the crypto and what you sold it for must be reported on your tax return, and 50% of that gain is taxable.

What this means when you sell crypto for your down payment

• You must report the sale on your taxes
• You’ll likely owe capital gains tax
• You need to keep all your records, acquisition date, amount, sale date, exchange rates, everything

So if you’re sitting on a big unrealized gain, it might be time to loop in a tax advisor before pulling the trigger.

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Do any Canadian banks accept cryptocurrency directly?

Not yet.

Mainstream lenders like RBC, TD, Scotiabank, and others don’t accept cryptocurrency as a form of payment, whether that’s for down payments, mortgage payments, or anything in between.

And I don’t expect that to change any time soon.

Why? Because the banks want clean, traceable Canadian dollars that meet regulatory standards. Crypto just doesn’t offer the transparency or stability they need to feel comfortable.

That said, some alternative or private lenders may be more open, especially if the crypto has already been converted and properly seasoned in a bank account.

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Which Canadian banks allow down payments from crypto proceeds?

While no bank will accept cryptocurrency directly, most of the big players will accept the cash proceeds from your crypto sale, as long as everything is properly documented and seasoned.

These banks may accept crypto proceeds (converted to CAD):

• RBC
• TD
• Scotiabank
• CIBC
• BMO
• National Bank
• Desjardins

Some, like RBC and TD, may show a little more flexibility, especially if you’re working with a good mortgage broker (hi) who knows how to package the file.

But don’t expect leniency without clear paperwork.

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What if you just sold your crypto and want to buy soon?

This is where things get tricky. If the funds from your crypto sale have not been sitting in your bank account for at least 90 days, you may run into resistance from the banks.

That 90-day window helps banks verify the source of funds and comply with AML rules. Without it, your application might get kicked back, or you might be asked for even more documentation to justify the deposit.

If you’re in a rush, talk to a mortgage broker before doing anything.

Depending on your full financial profile, we might look at:

• Alternative lenders who are more crypto-savvy
• Short-term private mortgage options (as a bridge until you qualify with a bank)
• Strategies to delay your purchase until your funds season

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Are there any lenders that don’t allow crypto-sourced down payments?

Yes. Some alternative lenders, especially those operating under stricter regulatory umbrellas or in risk-averse provinces, may reject any funds they can’t fully trace.

And no Canadian lender, bank or otherwise, will accept crypto or stablecoins directly, no matter how much of it you hold.

Even showing them your blockchain wallet won’t cut it. If it’s not in Canadian dollars and sitting in your name at a regulated financial institution, it’s not considered valid for mortgage purposes.

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What to avoid when using crypto for your down payment

Timing and traceability are everything. If you sell your crypto too close to your mortgage application, or if your documentation is sloppy, you’re setting yourself up for delays or denials.

Watch out for these common mistakes:

• Selling crypto and immediately transferring funds between multiple bank accounts
• Failing to document each stage of the transaction
• Using an unregulated or foreign crypto exchange
• Not planning for the 90-day seasoning period
• Assuming the bank will “understand” because the money is real

Spoiler alert: banks don’t care about your blockchain gains unless the gains have been safely converted, seasoned, and documented in a way that meets mortgage lending rules.

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Are crypto-backed mortgages available in Canada?

There are whispers in the fintech world and a few pilot projects involving crypto-collateralized mortgages. In theory, these let you pledge your crypto as collateral while avoiding the need to sell.

But let’s be clear: these products are extremely niche, largely unregulated, and carry big risks, like forced liquidation of your crypto if the price drops.

None of them are backed by the CMHC or covered by CDIC deposit insurance.

If you’re thinking about going down this route, proceed with caution and work with someone who understands both the crypto and lending worlds. For most buyers, this isn’t a viable mainstream option, at least not yet.

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What are the risks of using crypto for a down payment?

Even if you do everything by the book, convert your crypto, document your funds, and pay your taxes, there are still risks.

Risks to keep in mind if you’re using crypto to buy a home

• Volatility: Prices can swing wildly. That $50,000 in ETH today might be $30,000 by next month.
• Tax surprises: You could end up owing more tax than you planned for.
• Lender skepticism: Even with documentation, some lenders may be hesitant.
• Regulatory uncertainty: Crypto laws in Canada are still evolving, and that makes lenders nervous.

You need a solid plan, a good tax advisor, and a mortgage broker who understands the landscape.

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Stablecoins and the future of crypto in Canadian real estate

Stablecoins, digital currencies pegged to fiat, are getting a lot of attention in Canada. The federal government is even preparing to regulate them.

That might open the door for more crypto-friendly financial products down the line. But today? Stablecoins still need to be converted into Canadian dollars before they can be used for a mortgage down payment.

If you’re holding stablecoins like USDC or USDT and thinking, “this should be good enough”, sorry. You still have to go through the same 90-day documentation process.

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Bottom line: Using crypto for a down payment in Canada

Cryptocurrency isn’t off-limits for Canadian homebuyers, but it’s not a shortcut either.

If you’re planning to use crypto to fund your down payment, here’s my best advice:

• Start early: Give yourself time to sell, transfer, and season your funds
• Keep every record: Exchanges, wallet history, bank statements, you’ll need them
• Talk to your tax advisor: Capital gains can bite you if you’re not prepared
• Work with a mortgage broker: Not every lender is crypto-friendly, but the right broker can find one that is

This is a rapidly evolving space, and I expect we’ll see more innovation down the road. But for now, if you’re a Canadian homebuyer with a crypto wallet, the safest route is to convert your assets to cash and keep your financial story crystal clear.

Want to talk through your options? Reach out, let’s figure out a strategy that puts your crypto to work without putting your mortgage at risk.

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List of all FAQs: Using Cryptocurrency for a Down Payment in Canada

Can I use cryptocurrency as a down payment for a home in Canada?

• You must convert your crypto into CAD, “season the funds” in your bank account, and provide full documentation to meet compliance.

How does the CRA treat crypto when buying a house?

• The CRA treats crypto as a commodity, requiring capital gains to be reported and taxes paid when sold.

Do any Canadian banks accept cryptocurrency directly?

• No, major banks do not accept crypto directly due to a lack of regulatory clarity and AML risks.

Which Canadian banks will accept funds sourced from crypto proceeds?

• Most major banks like RBC, TD, Scotiabank, and others will accept CAD from crypto sales if properly documented and seasoned.

What happens if I just sold crypto and want to buy a house immediately?

• Without a 90-day seasoning period, banks may hesitate or require extensive documentation to approve your mortgage.

Are there lenders who reject crypto-sourced funds?

• Yes, especially risk-averse or tightly regulated lenders may refuse funds that are hard to trace.

What are common mistakes when using crypto for a down payment?

• Common issues include a lack of documentation, using unregulated exchanges, and not allowing time for fund seasoning.

Are crypto-backed mortgages available in Canada?

• There are niche pilot projects, but these products are high-risk and not yet mainstream or CMHC-backed.

What are the risks of using crypto to buy a home?

• Key risks include price volatility, unexpected taxes, lender skepticism, and changing regulations.

Can I use stablecoins like USDC or USDT for my down payment?

• No, stablecoins must still be converted to CAD and held for 90 days in your personal bank account to be accepted.

Does selling my crypto create a taxable event, and what are the implications?

• Selling your crypto creates a taxable event, requiring you to report capital gains to the CRA and possibly pay tax on 50% of the profit, just like stock sales.

Can using crypto proceeds affect my mortgage interest rate or eligibility?

• Using crypto proceeds does not typically affect your rate or eligibility if documentation is thorough, but incomplete records may cause denial or lender skepticism.

Will Canadian banks become more crypto-friendly in the future?

• Possibly. With stablecoin regulations coming soon, new financial products may emerge, but direct acceptance is unlikely soon.

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